Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I would be very surprised if the Cornerstone attack regarding witholding news is NOT about Blanca 1 . You may recall that there has been no news out of Blanca since the agreement was reached to split the concession into 1&2.
If I was NM i would have stopped all activity on Blanca 1 because as you say the geology we know about says that results from 1 would be a reasonable indicator of what may be in 2.
And of course Cornerstone have no control over the drilling programme so are stymied.
The only thing I am not so sure about is why it took them [Cornerstone] so long to start complaining - knowing who their activist shareholders are. I can only guess they had something else up their sleeve that fell through.
Questions for the board - Because I can't recall seeing any detail about the mechanics of the calculation.
Statement : If cornerstone can't stump up for their share of development spending Solgold can reduce the Cornerstone 15% stake in ENSA . If that stake gets below 10% then Solgold can convert that remaining stake to a NSR.
Q1- Is there a published calculation for determining the value of each percentage point of the 15% ? i.e how much of the Cornerstone debt would be written off in exchange for each percent.
Q2 - Is there a deadline by which Cornerstone need to stump up ?
Speculation for discussion : if Cornerstone owe 60million USD as their contribution then does 60m = 15%. So does each % = 4m ?
I have no idea , just throwing it out there .
Forgot to include : (Iceberg reminded me from his post)
I also really think the template includes local community engagement and the responsible approach which Solgold is taking.
My reading of NM stating this is the "template" is that he was referring to the exploration model and techniques. Not a template for getting it out the ground. The extraction method would depend on the actual prospect.
I am also keeping in mind that NM has stated a few times in the last two years that he is supporting a "Go for Gold" strategy. This was particular front of stage when the Blanca grades were first published. That may now be as much a "go for high grade core" strategy but I dont think the two are inconsistent and he has plenty of targets to choose from.
Just need to get the drills spinning and the cores extracted so they can decide where to apply most focus leading up to October.
For what its worth I think Newcrest would have been happy to sit on this for a few years until they got the Havieron/Telfer situation to the BAU state. Thats their #1 priority otherwise costs at Telfer will start mounting quickly if they find themselves in a position of having a processing plant working at well under capacity waiting for a new ore stream from Hav to come on-line.
I can't argue with the post from RedKnight except i think the coal ref may be 1.5B and not 1.5M :)
I disagree on a couple of points with this thread.
a) 2m is not huge . Its just over half of my holding and as a long standing holder of Solg and a PI I dont think its a big deal from my perspective. There will be quite a few PI's with 3m + holdings I would think. So the sale may have been Cornerstone or it could just as conceivably be another PI. Dont panic.
b) If you have been in Solg since the 2p days then your view might be that NM has done a very good job so far of building shareholder value. There were plenty of posters clamouring for a take out at 10 to 12p in those days and if they decided at 12p to realise their profit then that was their choice. Good luck if they found a better place for their funds.
If investors jumped into this share in the 20's and 30's expecting a quick profit then they must have been hoping for a buyout in the 40+ region and assumed the management would not stick to their master plan which has been stated quite clearly on many occasions. Again that was their money and their decision.
Its painful seeing the price drop but thats the name of the game. I am always happy when it goes up although I have been known to trade in small 100k blocks from time to time just for a bit of interest.
Regarding the 0.5 Risk factor.
Sprott or Red Cloud often use 0.8 fairly for opportunities in a similar state of advancement.
IMHO I would say that could also be considered a reasonable risk factor.
So for my own valuation purposes , and accepting all the other caveats and limits of the Numis note I will now assess this against a 24p target when considering any further investment. For me that is a good risk/reward ratio.
The minimum price rule is in place to stop concert parties acquiring a controlling interest and making a mandatory bid which is a low ball knowing they already have control.
Mandatory is 30% in the UK. Dont think there is a mandatory situation on TSX but they will have some protection measures.
And i believe its 12 months protection for mandatory , not 3.So about 37p
If there were no protections it would be ars* rap* open season.
As a LTH with just over 2m shares I cant see anything bad about this placing for the long term. Sure some short term traders will have been burn't but that comes with the territory. IMO its a good defensive move by Citi to (a) generate some working cash, (b) get new II's on board , (c) dilute existing large holders marginally.
If PI's want to participate they can still top up at slightly below the placing price on the open market - as I type.
But I think we do need to stick some pins in the other licenses that we have permits for so we can look to get back some positive results before BHP are released from their standstill. If Solg could strike something like hole 5 or 12 in one or other of those areas and get the results published before that deadline that would seriously raise the ante for BHP. IMHO
I dont believe this was rushed at all. All planned by Citi and there may be more defensive manoeuvres to come i suspect.
I have said it before but I will say it again -final top up .
I think the virus induced drop has de-risked the profit making potential of this share considerably so I have added again . Now LTH of approx 1.9m shares average just over 16p. Well under water on some of my purchases along the way but personally I think this is a good bet at these prices.
Well at 26p I said I was all in. And I was. But i now feel the need to liquidate other stocks in my ISA and SIPP in order to go all in again - if you can do that twice :)
I have been watching the trades over the last week or so and they are nearly all automated, and pretty small stuff by and large. Very few ordinary trades. The algorithms have really got hold of this one and seem to be in control at the moment. I believe if you understand the fundamentals and where we are in the exploration/development cycle you will see there is great value here. I certainly think so.
So as soon as I can muster a few pennies of liquidity I will be going all in .... ag
This is not advise to buy. DYOR and make up your own mind.
I have been in this share for ages so my avg is 17p. Room for some small profit taking if the chance arises.
But in my opinion , this is going to be a monster mine someday.
The question all holders will have to answer for themselves along the journey is "should i sell or should I hold now" .
Good luck
I have said it before (to myself not the BB) , but I will say it again out loud. Final top up . I think i will have to consider myself ALL IN with just a gnats widget under 1.6Million shares now. Fingers crossed the court don't play games.
or i'll be down on my last elbows.
FYI - Mining.com short article from Tuesday. Not new news but a nice summary. Make your own assessment.
http://www.mining.com/ecuadors-new-mining-policy-backs-large-scale-projects/
Selling the Solgold 85% of ENSA probably makes good economic sense after the PEA has been published if the offer price is right. It would free up resources up for exploration of the other tenements and reduce time until the next discovery or possible T1 can be proved. As as we know time is money.
To all holders - best wishes for the new year.
I have a feeling that 2019 could be another good year for SolGold investors.
No price predictions from me , I keep those to myself , but my confidence in SolGold as a company continues to grow as does my stock holding.
Good luck to all.
I don't often post on here , or anywhere for that matter, but todays RNS felt good to me. I have a sneaky feeling that this will push the indicated resources up considerably. My guess would be we could see 1.5 to 2 times for Cu and 2 to 3 times for Au based on Dec 2017 values for indicated when the update appears. Been in this share since hole 5 and I haven't felt so positive for quite a while.
GLA DYOR